nobody102[at]comcast.net (Leor) wrote:

- quote -

Benefits paid on a "per diem" basis may not be all tax
excluded. You determine the taxable amount by filling out
form 8853 (Schedule C), which I assume was not done at the
time of preparing her return.

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Leor wrote:

- quote -

You file the appropriate 1040 tax return and take a
deduction for the nursing care expenditures paid. Looks
like 209 days worth?

Look for the bill from the nursing company and the amounts
actually paid. Also don't forget to include on schedule a
other medical deductions AND any others to which she is
entitled.

ChEAr$,
Harlan Lunsford, EA n LA

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Leor <nobody102[at]comcast.net> wrote:

- quote -

Does she have much other income? If not, you can avoid even
talking to Conseco by adding 21,000 as income, and taking a
schedule C deduction of 21000 - (21000 x 0.075) = 19425,

Her income of 21,000 less deduction of 19425 less 3100 = 0

So she would have zero taxable income, thus zero income tax
and yet she would ave reported her 1099 income even though
she shouldn't have to. It's just one approach.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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- quote -

It should be no problem. Just file a tax return showing
your mother's income. Deduct the entire medical expense on
Schedule A (Form 1040) "Itemized Deductions". It is
unlikely, assuming your mother has no other income, there
would be any tax due.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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My 76 year-old mother, who is chronically ill, is having a
big problem w/the IRS. She has a Conseco LTC policy that
she paid into for several years. She then started using the
benefits of the policy three years ago for in-home nursing.
They paid ~$100/day to a nursing company. Last year, she
got a 1099-LTC form from Conseco claiming that she was paid
$20,900 in benefits (per-diem). The IRS sent her a letter
stating that this is to be counted as income, and that she
needs to pay taxes on it. However, all her benefits were
paid directly by Conseco to her nursing provider. She did
not get any direct income from Conseco. What do I tell the
IRS or Conseco to have to correct this problem?

Thanks very much.

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